Nerdwallet IPO: Is fintech stock NRDS a buy? 

Highlights

  • Nerdwallet offers financial guidance services to users on credit cards, insurance, investing, personal loans and banking, among other financial products.
  • The Nerdwallet IPO follows a flurry of fintech companies that have gone public this year, such as Robinhood (NASDAQ:HOOD) and Affirm Holdings (NASDAQ:AFRM). 
  • Nerdwallet plans to offer its common stock on the Nasdaq Stock Market and will likely trade under the stock symbol 'NRDS'.

When the COVID-19 pandemic hit the world, it affected the economy and left people wondering about their finances as unemployment increased during the pandemic period. 


Financial technology (fintech) companies are expanding business operations to attract customers by guiding them on financial matters as technology evolves rapidly. 


One such fintech company is Nerdwallet, a personal finance company based in San Francisco in the US. Started in 2009, Nerdwallet has emerged as one of the leading financial technology companies in North America and had about 21 million monthly unique users (MUU) per month in the first half of 2021. 


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Nerdwallet offers financial guidance services to users on credit cards, insurance, investing, personal loans and banking, among other financial products. The Nerdwallet IPO follows a flurry of fintech companies that have gone public this year, such as Robinhood (NASDAQ:HOOD) and Affirm Holdings (NASDAQ:AFRM). 


Nerdwallet IPO: Key details


As per the documents filed with the US Securities and Exchange Commission (SEC), the financial services company has not set terms for the initial public offering, and the price range of the common stock is not out yet. 

Nerdwallet IPO

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Nerdwallet could seek a valuation of US$ 5 billion, and the underwriters for the IPO would be Morgan Stanley, BofA Securities, Barclays, and Truist Securities, among others. 

The company could offer pre-IPO shares to retail investors through trading platforms or registered stockbrokers.


Nerdwallet plans to offer its common stock on the Nasdaq Stock Market and will likely trade under the stock symbol 'NRDS'.


Bottom line


Seeing the financial performance of the company, Nerdwallet seems to be on an upward trajectory. For the six months ended June 30, 2021, Nerdwallet's revenue was US$ 181.6 million in comparison to US$ 137.3 million in the same period of 2020. 

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As of June 30, 2021, the financial services company's cash and cash equivalents were worth US$ 41.1 million and the total assets were valued at US$ 242.8 million. 

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